Reg GG and Payment Systems

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Question:

I'm confused about which payment systems Reg GG covers. The reg states ACH, card systems, check collection systems and wire transfer systems are included, but the American Bankers Association website says the reg "does not require that checks, ACH payments, or wire transactions related to Internet gambling be monitored or blocked." That would definitely make it easier, but is it right?

Answer:

It's actually correct. For those systems, your front-end vetting of business accounts to prevent doing business with a business engaged in illegal Internet gambling essentially takes care of the requirements. Only for card systems do you have to be on the lookout for transactions that appear to skirt the regulation and law, and block them.

First published on BankersOnline.com 7/26/10